Regulatory Compliance Flashcards
7 cards from real ALA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Compliance flashcards as text
The Sarbanes-Oxley Act (SOX) provisions most relevant to law firms primarily concern:
Answer: Attorney conduct regarding securities fraud and document retention obligations
SOX imposed obligations on attorneys appearing before the SEC, including reporting up-the-ladder requirements and prohibitions against destroying documents relevant to securities violations.
Which of the following best describes a 'hold' notice (litigation hold) in a compliance context?
Answer: An internal directive to preserve documents and data relevant to anticipated or pending litigation
A litigation hold is an internal communication requiring relevant personnel to preserve documents, electronically stored information, and other evidence related to actual or anticipated litigation.
Under the Health Insurance Portability and Accountability Act (HIPAA), when does a law firm most commonly become a 'business associate'?
Answer: When representing any healthcare provider or handling Protected Health Information on its behalf
A law firm becomes a HIPAA business associate when it performs services for a covered entity and those services involve access to Protected Health Information (PHI).
The Family and Medical Leave Act (FMLA) entitles eligible employees at covered law firms to take up to how many weeks of unpaid leave in a 12-month period?
Answer: 12 weeks
FMLA provides eligible employees up to 12 weeks of unpaid, job-protected leave per year for qualifying family or medical reasons.
A law firm's trust account is found to have a shortfall due to a bookkeeper error. The legal administrator's FIRST obligation is to:
Answer: Report the shortfall to the managing partner immediately and initiate a reconciliation investigation
Trust account shortfalls must be escalated to firm leadership immediately so that the cause can be identified, the account restored, and any required ethical disclosures evaluated.
Which type of workplace harassment, if severe or pervasive enough to create a hostile work environment, violates Title VII of the Civil Rights Act?
Answer: Harassment based on race, color, religion, sex, or national origin
Title VII prohibits harassment based on protected characteristics—race, color, religion, sex, and national origin—when it is severe or pervasive enough to create a hostile work environment.
When a law firm implements a records retention policy, which factor is MOST important in determining minimum retention periods?
Answer: Applicable statutes of limitations and regulatory requirements
Retention periods must be based on applicable statutes of limitations, regulatory mandates, and ethical rules—not storage costs or client verbal requests.